Natural Gas Fundamental Forecast – May 5, 2016

June Natural Gas futures finished the early session at $2.070, down -0.016 or 0.77%. The market is now down seven sessions from its recent top, suggesting sellers have regained control after a spike into $2.304.

Prices have been under pressure recently as weather forecasts indicated minimal need for gas-powered indoor heating in the next two weeks. The natural gas market is already oversupplied, with storage levels 48% above the five-year average for this time of year, due to robust production and sluggish demand.

With weather the key stimulus at this time, prices are expected to continue to slide lower over the near-term. However, there is hope for higher prices over the long-run. Many traders expect natural gas futures to rally later in the year as production falls to lower spending on new drilling and demand increases.

May 3-9th: Weather systems over the South and East will bring showers, thunderstorms, and slightly cool conditions, while the rest of the country remains mild to warm with mainly 60s to 80s. The West will be mostly mild this week with 60s and 70s, although weather systems coming in off the Pacific will bring showers and modest cooling mid-week. A cool blast out of Canada is beginning to push into the Great Lakes and Northeast with showers to bring a bump in natural gas demand Wed-Thurs, followed by mostly comfortable temperatures this weekend and next week. Overall, much of the country will experience LOW to MODERATE natural gas demand.

FxEmpire provides in-depth analysis for each asset we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

WEEKLY

Natural Gas Weekly Update
Release Schedule: Thursday between 2:00 and 2:30 p.m. (Eastern Time)

Weekly Natural Gas Storage Report
Release Schedule: Thursday at 10:30 (Eastern Time) (schedule)